Federal funding bid for King Island wind farm

The State Government believes federal funding support for its planned King Island wind farm is warranted if the carbon tax is abolished.

ABC TV News

It has been revealed Hydro Tasmania wants the Federal Government to help fund its $2 billion King Island wind farm project.

The state-owned hydro electricity generator is conducting a feasibility study into its plan to build 200 wind turbines on the Bass Strait island.

The proposal for Australia's largest wind farm includes the construction of an underwater cable from King Island to Victoria.

The Energy Minister, Bryan Green, has told a parliamentary hearing Hydro Tasmania will be financially worse off if the Coalition succeeds in its bid to abolish the carbon tax.

Mr Green says the government could offset the losses by helping to fund the King Island project and he will discuss the matter at a meeting with the relevant federal minister next week.

"My hope would be that the Commonwealth will see the sense in this strategy, and we'll be certainly pressing that on the minister," he said.

Clean energy opportunity

Mr Green says Hydro's senior executives have already taken the lobby to Canberra and believe there is some support at the federal level for the King Island wind farm.

"If the Commonwealth was serious about mitigating against the damage that they're doing, by going back to the past when it comes to a price on carbon, then they must look at other ways to ensure there are renewable opportunities.

"This is a major project that can make a difference in providing clean energy into the national electricity market," said Mr Green.

The proposal for a second Basslink cable is being backed by the Tasmanian Liberals.

The Opposition's energy spokesman, Matthew Groom, says his party was the first to come up with the idea.

"In fact when we first proposed a couple of years ago a renewed push for a nationally-funded second link, Bryan Green criticised us for doing that, he suggested that that was not in Tasmania's interests.

"I'm very pleased that Bryan Green has seen the light and jumped on board the Liberals' idea for a second link," said Mr Groom.

The King Island wind farm project is being challenged in the Federal Court by the No Tas Wind Farm Group on the grounds it does not have enough community support.